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Business, 19.02.2020 21:29 jblac

A European call option and put option on a non-dividend-paying stock both have a strike price of $20 and an expiration date in three months. Both sell for $3. The risk-free interest rate is 10% per annum, the current stock price is $19. Identify the arbitrage opportunity open to a trader.

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A European call option and put option on a non-dividend-paying stock both have a strike price of $20...
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